Another government accounting success story:
According to the report released in March, HUD reissued financial statements for fiscal 2015 and 2016 "due to pervasive material errors that we identified." Those errors were contained in a November filing.Ignore those cooked books...
"The total amounts of errors corrected in HUD’s notes and consolidated financial statements were $516.4 billion and $3.4 billion, respectively," the IG said.
The office also noted other circumstances that apparently made it difficult for the IG to obtain “sufficient, appropriate evidence” as part of the report. According to the IG, this included weak internal controls over financial reporting which led to errors and delays in preparing financial statements; several “significant deficiencies”; and instances of noncompliance with applicable laws and regulations.
In response, HUD revised the statements and said the “errors” were solely in “presentation” of financial information which had since been corrected. A February letter from HUD’s Chief Financial Officer Courtney B. Timberlake also argued that the corrections “did not represent a change in cash balances, any improper payments, or misallocation of HUD resources.”